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Barbara

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Spending has been top of mind for me lately. One thing in particular that I'm noodling is the payment options I have for my purchases and why I choose a particular payment method. It got me curious about how other folks pay for things on a day-to-day basis.

So, I'm asking you! When it comes to your day-to-day purchases, how do you pay for the majority of them?

Do you prefer the quick swipe of a debit card? Is a cash system what works for you? Are you using a credit card to maximize rewards? Or is writing a check your method of choice?

Take our poll and tell us more about your payment routine through comments.

Barbara

Lately, I've been a bit more on edge. My stress level is palpable. I'm going a million miles an hour, and for some reason I just can't seem to calm down.

And then there was a light bulb moment. While having a conversation with a co-worker about her recent lunch-hour trip to Banana Republic, I remembered what has changed: no more spending on stuff.

Clearly, over the years I have become a little dependent on buying things to lift my spirits when I'm tense. Yes, I, like many, have become accustomed to retail therapy. Now, I knew that I had a tendency to buy a new pair of shoes or home accessory from time to time without really needing them. However, I had no idea how much not buying those things could affect my mood.

So began my quest to curb my retail therapy habit. I had to find something to boost my happy factor without spending a dime. It's all about stress management, and here's what's been effective so far:

• Working out. A tried and true stress buster, exercise boosts your energy and your endorphins. The only caveat to this retail therapy remedy is my intermittent lack of motivation. But with ample opportunities to workout at or close to home it's a lot easier to make it a priority.
• Tickling the ivories. Last year, I purchased a digital piano. Yes, it was part of a stress-related spending spree, but in my defense it was a used find from Craigslist, not a full-priced indulgence. When I'm feeling overwhelmed, playing music has helped me escape. There's something really great about getting lost in a pile of sheet music.
• Tackling a home project. Now, I know what you're thinking. Projects around the house mean shelling out cash. Au contraire, there are plenty of projects I can undertake without spending. For example, a little closet organization or deep cleaning in the kitchen gives me the satisfaction of accomplishing something. Plus, it helps me feel like my world is just a little more put together.

Have any of you kicked the retail therapy habit? Tell us: What helps you resist the urge to spend when you're stressed?

Barbara

Alright, I'll admit it: After rereading my spending diary, I realized that too often I rationalize my purchases — especially those I shouldn't have made.

Take, for example, my Tuesday purchase at ACE® Hardware. Have I actually used that power sander? Nope. But because I could get it on sale and thought it would be handy in the future I had to buy it.

I had to buy it? No, I didn't. No one was forcing me to take that item to the cash register, slide my Check Card and sign my name. But yet, I felt it necessary to make that purchase.

So with my recent spending habits in mind, I made the decision to stop buying non-essential things until April.That means no new clothes, shoes, home accessories, power tools, etc. No "stuff."

I'm hoping to change how I think about the things I purchase and develop a better spending perspective. It comes down to "wants" vs. "needs" and most of the stuff in my life falls into the "want" category.

I'm already learning that there are a lot of non-essentials that I consider buying on a daily basis. Mostly it's because of my day-to-day routine. When a promotional email that offers free shipping hits my inbox, I have a knee jerk reaction to see what's available. When I'm lounging on the couch, I tend to browse my favorite online shoe store.  When I run to grab deodorant and laundry detergent at the store, I swing through the home décor first.

So, I'm adjusting my routine (i.e. no more aimless wandering through Target®) and stopping to think about why I'd even be considering a purchase. Wish me luck!

What's your thought process before you make a purchase? Do you find yourself more prone to spending when you're in certain situations?

Barbara

Editor's note: Today we're excited to introduce Asha Richardson, a guest blogger from Youth Media International.  Asha's a Bay Area  native and freshman at Mills College. She has been reporting at Youth Radio/Youth Media International for two years, and her work has been featured on NPR , American Public Media, PRX , and the Huffington Post. On campus she is an Economics major and the historian for the Black Women's Collective. In her spare time she enjoys photography, writing poetry and having adventures with her friends.

When I started at Mills College  this year, managing my own money didn't seem so hard. I got a free rug from a friend, picked out a table from the re-use depot on campus, and bought a used refrigerator for half the price of a new one.

But as I began to make friends, we wanted to go out and have fun — and fun adds up quickly. We would go out for frozen yogurt, but end up shopping and going to a restaurant for a dinner, and I'd be out $40 by the end of the night.

Some of my friends were broke before the second month was over. I wasn't much better off. When I checked my statement online and realized I only had $19 in my checking account, I knew I was in trouble.

Now that I don't have to ask for permission each time I want to buy something, it's easy to lose track of where my money's going. Temptation is everywhere: from shiny new textbooks to a pair of Steve Madden  heels I need for the party next weekend!

I have found a few ways to save: I put a certain amount of money aside that I can blow and put the rest away, and I make sure I have a strict list of what I need when I go shopping. That's helpful, but the temptation to spend can be so hard to resist! What else could I do to manage my money?

Well, what better way to get you to stop spending than getting your friends to help? I mean, in real life, I ask my friends if an outfit is cute. So why not use Facebook to get their opinion on how much they think it should cost?

With that in mind, a few of us at Youth Media International  got together to figure something out. We decided early on to create an app that helps young people resist temptation. After many meetings with Context Optional , the developer we partnered with to build the app, we came up with "Stop Me From Spending!" 

Barbara

One of the tips usually offered to folks starting or refining a budget is to keep track of where your money is going. An easy way that I do this is through Wells Fargo Online^®.

However, I decided to take it a step further and share some thoughts on where my money is going — a spending diary if you will. Here's one week in my finances:

• $6.71 @ Jamba Juice^® — Mmm, Strawberry Surf Rider^TM for breakfast.
• $2.39 @ the local grocery store — On the way to climb Piestewa Peak we stopped to grab a six-pack of bottled water to stay hydrated. Alas, we did not bring refillable ones with us.
• $4.51 @ Taco Bell^® — Sustenance!
• $40.00 @ Southwest Institute of Healing Arts Student Massage Clinic — After climbing a 2,600-foot peak, an hour-long massage was in order.
• $36.80 @ Best Buy — The most needed, yet avoidable purchase of the trip, A GPS charger. "Gary" my Garmin^® was running on empty and I forgot to pack mine. Threw in a magazine for the trip home, too.
• $6.78 @ Village Inn^® — Here's a chuckle worthy purchase. Driving from dinner with a friend in Phoenix to Tempe I stopped to use the facilities at a gas station, which unfortunately were out of order. Given the urgent need, I went next door to the restaurant and purchased a couple slices of pie afterward.
• $7.00 @ My Big Fat^TM Greek Restaurant — A couple dollars for something to sip on while catching up with someone from my hometown.

Total for the day: $104.19

Barbara

I've reached a turning point in my life. I no longer wish to be reminded of my birthday! But since I've done so at twenty-five, twenty-four and twenty-three, I've decided deal with the reminder that I am, indeed, getting older, and share a little evaluation as I turn 26.

I had an important financial revelation this year – in the infamous words of Roseanne Roseannadanna : "It's always something." If you're not tearing apart your bathroom, you're buying bridesmaid dresses. If you're not hunting for better insurance, you're quitting the gym to save money.

With that in mind, I decided to use a financial mantra in my 26th year: Be flexible, but firm. Kind of a contradiction, yes, so let me elaborate.

Over the past year, when I've had to dip into savings to cover unexpected expenses or modify my spending habits to replenish that savings, I've tended to freak out. You see, I'm a planner. I like to routines and making to-do lists. This year was supposed to be the year to grow my savings significantly while chipping away at my debt.

Deviating from my plan has been tough. I think having some flexibility with my financial plan is going to be the key to not getting frustrated with money.

Now about being firm...when you take a slight financial detour, you're generally not far from the original path. And with the right mentality, you can hop back on track quickly. However, it's tempting once you've gone a bit astray to justify going just slightly farther from the road.

Here's my latest example: This winter a frozen sump pump  pipe at my house meant tearing out and trashing my basement bathroom's vanity and demolishing most of the wall. As I thought about what I'd need to do to repair the damage, the wheels started turning. By the time the plumbers left, I had strayed so much from the path that a full bathroom renovation was planned in my head.

Whoa, Nellie! Just because it would be a couple hundred dollars to repair didn't mean I had to gut everything.

I have to stay firm and resist the temptations when I've already deviated from the plan. Otherwise I'll just freak out even more in the long run!

Be flexible, but firm. I think I can handle that.

Do any of you have your own financial mantra? I'm also curious: What helps you stick to your financial plan even when you have to modify it a bit?

Caroline

Happy 2010!

Have you made any money-related New Year's resolutions? For me, this is the year I want to settle on a specific college-savings plan for my two younger kids, and cut back spending where I can (like eating out).

If you don't have a financial resolution, I've got an idea for you: Try just one money-saving trick this year and see how it goes. As with all resolutions, once you decide on one, write it down — it will make it more "real"! Here a few money-saving ideas to get you started:

Cash plan. If you find yourself using your debit or credit card  willy-nilly on random things, try operating on a cash-only basis. Here's how it works: Figure out what you need to spend money on for a given week (food, gas, entertainment, etc.). Take out only that amount of cash, and live on it for that week. The idea is to curb your unplanned purchases. If you do spend money unexpectedly, then you have to be accountable for it somewhere else. For example, if you make an unexpected trip to Burger King® , well, you'll just have to take that out of your gas money, or whatever. You can build in an affordable cushion for incidentals if you like, but the point is to set limits on your "random" spending. And remember to make sure all your fixed expenses (rent, phone bill, etc.) are covered before determining your cash flow for the week.

Say "no" to vending machines. When you're running all over campus, strapped for time, it's easy to get in the habit of stuffing bills into a vending machine for a bottle of pop , some candy — anything to keep you going. While it might be convenient, it's a major waste of money. Try buying your go-to vending machine items at the grocery store and stashing them in your backpack instead. It may not seem like much, but if you're dropping a dollar or two per day, you can easily cut that in half by planning ahead and bringing snacks to campus with you. That extra few dollars a week really adds up over time.

Check your bills. You're probably paying your bills on autopilot by now — in fact, you may actually be making your payments automatically online. Still, it never hurts to review your bills to make sure you know what you're paying for. Did you agree to some "free" movie channels that you're now inadvertently paying for? Are you going over the limits of your cell phone plan? Do you know how much interest you're paying on your credit card bill? Take some time to make sure everything is in order and that you understand the details of all your bills.

Make sure the roomie divide is equal. If you're living with roommates, are you splitting expenses evenly? Make sure that one person isn't getting stuck with any "extras" that don't show up on the bills — like buying all household cleaning supplies. Revisit any other financial agreements you've made with your roommates and decide if they still make sense.

Conquer one money-wasting habit. Just about everyone has one bad spending habit, whether it's a daily coffee run  or a weakness for shoes. As I mentioned, for me, it's eating out too often. While it's probably not realistic — or necessary — to try to eliminate the little luxury from your life altogether, you can make a resolution to seriously cut back. I'm aiming to eat out no more than once a week. Can you cut your coffee runs to Saturdays only? Dial back the shoe-shopping to every other month?

Give these tips a shot and let us know how they work for you! And in the meantime, let us know: What are your financial New Year's resolutions?

Caroline

As a graduate student, you have the opportunity to borrow significantly more funds per year to cover your expenses than you did as an undergraduate student. Are you finding that you need to borrow the full amount of federal aid offered to cover your expenses?

I ask because my step-daughter is a grad school student, but has a scholarship  so she doesn’t need to borrow nearly the full amount of aid offered to her. She is also able to work  a significant amount , which helps make up for the fact that she no longer has two roommates to share living expenses.

What has your grad school experience been like? Are you borrowing the full amount offered you in student loans?

Are your expenses significantly higher than when you were an undergrad? How are you managing it?

Tell us about your situation.

Caroline

Senior year is all about planning and saving for college. And part of your planning process should include a scholarship search.

One easy way to get started is to enroll in the Wells Fargo CollegeSTEPS® Program & CollegeSTEPS Scholarship Sweepstakes¹. When you register, you'll not only get a chance to win money for college, but you'll get help planning for it as well.

Sign up for the CollegeSTEPS Program online and you'll receive emails with helpful college-planning tips on topics such as choosing a college and securing financial aid.

You can enroll in the program to start receiving emails anytime from freshman through senior year. High school seniors who sign up for the program are automatically entered to win $1,000 toward their college tuition.

Have you started a scholarship search? If so, got any tips for fellow seniors?

¹ NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN THIS SWEEPSTAKES. Purchase does not improve the chance to win. Continued CollegeSTEPS Program enrollment not required for Sweepstakes entry. Sweepstakes begins July 1, 2009, at 7:01 a.m. (CT) and ends May 31, 2010, at 7:01 a.m. (CT). Sweepstakes is open to any current U.S. resident, (excluding residents of New York, Florida, and Rhode Island), who has enrolled in the CollegeSTEPS Program, is a high school senior during the 2009-2010 school year, and graduates from high school in 2010. Limit one entry per Eligible Entrant during the Sweepstakes Period. Void where prohibited or restricted by law. Actual odds of winning depend upon the total number of entries received at the time of winner selection. See the Official Rules for complete details.

Barbara

Lately, I've been spending quite a bit of time in a different world: Wells Fargo's online virtual world, Stagecoach Island. My online persona, Babsy, has been helping develop some new features for the island community.

The last time I was hanging out on the island I met up with Cassie, the Stagecoach Island tour guide (a.k.a. "skipper"), and asked her a few questions so I could bring you the scoop on Stagecoach Island.

Babsy: So, Cassie, what goes on in Stagecoach Island?
Cassie: Stagecoach Island is a fun, 3-D virtual world where our members — students and young adults — can learn lessons about smart money management! You know…things like savings, checking, credit, mortgages, and even virtual jobs. And we just launched the Stagecoach Island University too. It's a brand new spot on the island where islanders can enroll and learn tips on financial aid, and how to save and prepare for college.

Babsy: How can people earn money on the island?
Cassie: To earn "shells," our island currency, islanders can take lessons in the ATM, answer daily trivia, and get an island job in world . The shells can only be used while playing the game.

Babsy: When I'm on the island I love to go shopping and change what I'm wearing. What kind of activities are the most popular?
Cassie: Members love that they can build their dream home. They need to take the financial education lessons in order to qualify. But once they do, they can be as creative as they want in decorating and designing their virtual island home. Some members even collaborate and design places for the community to share and gather. We've seen greenhouses, movie theaters, community centers, restaurants, and space centers — the virtual sky is the limit!

Babsy: What's the most fun event you've had on the island?
Cassie: We once had an Oscars  party where a member created a maze made of ice that islanders had to get through before they could get on the red carpet and into the beautiful auditorium he created. It was definitely fun and creative!

Babsy: Where is your favorite place to hang out on the island?
Cassie: Lately I've been into sitting by the fireplace in the Stagecoach Island University. It's quiet, and a good place to hang out and study with my fellow islanders.

Babsy: How does going to Stagecoach Island University help folks on the island?
Cassie: Stagecoach Island University helps the members by giving them an opportunity to learn more about financial aid and how to better prepare for college. There are lessons on college, grants, scholarships, dorms, financial aid, and tips on budgeting and spending smart. It's definitely a great interactive resource for the young adult audience to check out. Plus, once they complete their classes, they can earn higher paying jobs on the island!

Babsy: What would you say to someone who hasn't yet explored the island?
Cassie: Come check it out! Stagecoach Island is a world created by Wells Fargo in partnership with our premiere resource for financial education, the Hands on Banking® program. You can explore the island and its hidden secrets, connect with friends and make new ones, and at the same time learn smart money management. Best part? It's free to download. Come join us today!

To hear more from Cassie about what's going on in Stagecoach Island and see Babsy's post about Stagecoach Island University, head over to the Stagecoach Island Community site!